Q. What is the cost and charge criteria for home loan and when it is due ?
Every bank charge fees at the time of application (processing fee) and at the time the loan get sanctioned (administrative fee) respectively. The amount of loan received by a person might be less than the processing fee, on the contrary, for the administrative fee, only 1 % of the sanctioned amount is to be paid. Both the processing fees and application fees are payable to the prior.
There are certain additional costs that home loan carries –
Interest tax- it is the tax payable on the interest paid on home loan, not on the principal. This tax, sometimes induce in the rate of interest, perhaps, not charged separately.
Miscellaneous costs – it is quite possible that some banks might impose a documentation or consultant charges.